Candlestick has the meaning of a “candlestick” and has a shape like a “candlestick”. On a candlestick chart, the bar is called the body, and the axis is called the shadow.
On the candlestick chart, you can choose several time frames that will describe each candlestick. If the time frame is fifteen minutes, it means that one candlestick describes the price movement within fifteen minutes.
Well, in one candlestick, you can immediately get four information, namely:
- Initial price or open
- Closing price or close
- The highest price is high, and
- The lowest price is the low on that time frame.
Then, you can also see that the candlestick has two colors, namely green and red. A green candlestick means a bullish candle, because the closing price of the period closed higher than the opening price, or which means close > open (close is greater than open).
In addition, a red candlestick means a bearish candle. This indicates that the period closed with a lower closing price than the opening price, or which means close < open (close is smaller than open).
So, when the price is opened at OPEN, the price will then move to the highest level, which is HIGH and to the lowest level at LOW. At the end of the course of the period, the price will close at the CLOSE level. Because the close level is higher than the open level, the candle color will automatically be green. If the open level is higher than the close, then the color of the candle is red.
Well, the axis above will be referred to as the upper shadow, this is a trace of price’s journey to its highest level in that period. Meanwhile, the wick below the candle is referred to as the lower shadow, which is a trace of the price’s journey to the lowest level in that period!